Trade Desk (TTD) is likely to see “revenue re-acceleration” this year as “solid” Q4 results set up the company for 2024, RBC Capital Markets said in a Saturday note.
“The broader macro environment remains uneven, but we continue to pick up signs of improvement to start the year with Q1 likely being stronger than Q4 when adjusting for seasonality,” RBC said. The investment firm estimates Q4 revenue to be close to the 2.2% average beat in the past four quarters but noted that it expects the company to issue a “prudently conservative” Q1 outlook.
RBC said current investor concerns revolve around the potential impacts of Google cookie deprecation and Amazon’s (AMZN) Advertising Video On Demand inventory. These concerns have been “overblown” but will still be “challenging” to dismiss near term, RBC added.
Trade Desk is set to release its Q4 results on Feb. 15.
RBC maintained its outperform rating on Trade Desk, with a $90 price target.